230 – What Exactly Does New Normal Mean in Real Estate

What Exactly Does New Normal Mean in Real Estate

What Exactly Does New Normal Mean in Real Estate

This question is on all of our minds lately I bet. it certainly is on my mind.   

Everyone keeps mentioning this supposed “New Normal” but what does that mean for real estate investors?  The true meaning depends on your own interpretation of what “normal” is. 

Let me explain…for me, it’s normal for a seller to accept payments for their equity because I believe it’s the smartest way to sell a property.  Because I believe so deeply in this method of selling real estate I am shocked when someone disagrees. 

Because I believe seller financing is a normal thing to do, I find it easy to obtain seller financing terms when I buy real estate.  When I sell real estate I always try to sell it on terms for three main reasons: 

  1. Higher Sales Price because I make it “easy to buy” 
  1. I receive a predictable stream of income 
  1. I can reduce my tax liability and spread out what liability I have over time with a tax strategy. (Read Installment Sale IRS Publication 537) 

New Normal could mean it’s an accepted practice to no longer pay rent. 

New Normal could mean a shortage of rental housing due to landlords refusing to allow people to live rent-free in their rentals. 

New Normal could mean skyrocketing rents due to lack of availability of housing. 

New Normal could mean that good people need a clean, safe affordable place to live (and always will) therefore make a policy to only rent to these people. 

New Normal does mean that Airbnb is laying off 25% of its workforce globally, but this can also mean that you now have a reason to learn how to be a better marketer and obtain more direct bookings. 

New Normal does NOT have to be a bad thing.  All of the recent drama will clear much of the smoke from our eyes so hopefully more people will put a priority on gaining financial intelligence, and then financial independence.  It’s about streams of income folks, stop chasing those piles.  Flipping houses is for the uneducated, buy rentals instead when the numbers make sense.  Don’t know how to analyze a deal?  Go to HowToMakeDeals.com for my free course on learning how to do just that.

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